PROCEDURE MANUAL
CLASSIFICATION: Accounting and Payroll PROCEDURE NO. V-11 03/00
SUBJECT: Travel SUPERSEDES NO. V-11 07/99
Page
INTRODUCTION
I. IIT TRAVEL FLOW CHART…………………………………………………………... 1
IIT TRAVEL FLOW CHART……………………………………………………………2
(Travel arrangements made through the designated travel agent)
II. POLICY…………………………………………………………………………………..3
A. General……………………………………………………………………………….. 3
B. Standards……………………………………………………………………………... 3
C. Use of Travel Credit Cards…………………………………………………………... 4
D. Approval……………………………………………………………………………... 4
III. IIT TRAVEL REQUEST FORM (TRF)………………………………………………… 4
IV. ADVANCES…………………………………………………………………………… 5
V. TRANSPORTATION RESERVATIONS………………………………………………. 5
A. Use of Travel Agency………………………………………………………………… 5
B. Cost Containment……………………………………………………………………. 6
C. Itinerary………………………………………………………………………………. 6
D. Travel Cancellation or En Route Changes…………………………………………... 6
VI. REIMBURSABLE EXPENSES…………………………………………………… 7
A. Transportation……………………………………………………………………….. 7
B. Car Rental & Insurance…………………………………………………………….… 8
C. Living Expenses……………………………………………………………………… 9
D. Other………………………………………………………………………………..…9
VII. NON-REIMBURSABLE EXPENSES…………………………………………………... 9
VIII. PREPARATION OF TRAVEL EXPENSE ACCOUNTING REPORT (TEAR)…….…. 10
A. TEAR & CDV………..……………………………………………………………… 10
B. Expense Reporting…………………………………………………………………… 10
C. Charge Number………………………………………………………………………. 11
D. Approval…………………………………………………………………………….... 11
IX. INTERNATIONAL TRAVEL………………………………………………………….. 11
X. INSURANCE……………………………………………………………………………. 12
XI. PROCEDURES FOR IIT DESIGNATED TRAVEL AGENT…………………………. 13
I.
PROCEDURE MANUAL
CLASSIFICATION: Accounting and Payroll PROCEDURE NO. V-11 03/00
SUBJECT: Travel SUPERSEDES NO. V-11 07/99
TRAVEL
II. POLICY
A. General
This document describes IIT’s general policy and procedures as they relate to travel authorizations, advances issued to employees, university business expenses incurred by employees, settlement of expenses, various modes of transportation, lodging accommodations, credit cards, cancellations and changes, international travel, travel insurance, and designated travel agent procedures.
Advance written authorization will be required when one of the following occurs: university paid transportation out of the Chicago metropolitan area; the issuance of travel advances; a trip encompassing an overnight stay; or personal travel combined with university business travel. Written authorization is requested by completing a Travel Request Form (TRF). (Attachment A).
Expenses incurred by employees on official university business will be reimbursed on the basis of a per diem for meals and incidentals and/or actual cost reimbursement upon receipt of a properly completed Travel Expense Accounting Report (TEAR) and valid receipts supporting the reimbursement request. (Attachment B).
Official travel begins when an employee leaves his/her residence or regular place of employment for the purpose of furthering university business and ends when the employee returns to his/her residence or regular place of employment. For travel outside of the Chicago metropolitan area, there is a $30 per diem on meals and incidentals and/or actual cost reimbursement with receipts. Reimbursements in excess of $30 per day will require receipts. Original receipts are required for reimbursements claimed on the TEAR. When the original receipt is not available, a copy is acceptable with an explanation of why the supporting document is a copy. Reimbursement without required receipts is subject to the discretion of the IIT Controller’s Office. Lack of proper support for expenditures will result in any reimbursement included as taxable income to the employee. Guidance should be sought from the Controller’s Office as to the reimbursement policy of any questionable or unusual expense before the expense is incurred.
B. Standards
Employees share a basic responsibility for the use of good business judgement when incurring expenses. Employees are expected to exercise the same care when incurring business expenses as would be exercised when incurring personal expenses. Effective control of expenses is a primary concern of everyone at IIT and should be kept in line with a reasonable economical standard of living.
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C. Use of Travel Credit Card
The IIT American Express Corporate Credit card is the preferred medium for charging all applicable travel expenses. An annual fee will be charged to the employee. Employees are personally responsible for timely payment of their account. American Express bills are sent directly to the employee’s home. Assuming that the employee has met IIT’s travel expense billing requirement, obligations and costs incurred are reimbursable under IIT policy. The employee will be reimbursed for all business expenses in sufficient time to allow prompt payment of received bills.
All employees are provided an opportunity to obtain this corporate card. Applications are available at the Controller’s Office or at the Downtown Campus, Office of Administration and Finance, Suite 265. If an IIT American Express Corporate Credit card is not available or the traveler prefers another card, other personal credit cards may be used for charging university related travel expenses. Airline tickets can be charged directly to IIT's central account only when making reservations through the IIT designated travel agency. All tickets issued by IIT’s designated travel agent will be treated as an advance to the employee until properly accounted for. All other travel costs will be reimbursed after travel is complete.
D. Approval
All travel by IIT personnel on IIT business must have the advance approval of the appropriate Department Chair, Principal Investigator or Department Director, and in the case of foreign travel, the appropriate Vice President. Travel on grants and contracts requires the same approval as other university travel. No airline tickets will be charged to IIT's central account by the designated travel agent without an approved TRF.
III. IIT TRAVEL REQUEST FORM (TRF)
A. When using the designated travel agent:
1. The TRF is the method of authorization ensuring accurate travel requirements between all concerned parties. When IIT employees choose to use the designated travel agent, they must fax a copy of the properly completed TRF to the agent prior to the agent issuing and releasing tickets or confirmation numbers.
2. The white original and yellow copy of a properly completed TRF must be submitted to the Controller's Office as soon as travel plans are made when using the designated travel agent. No advances or reimbursements will be made unless the Controller's Office has received an approved TRF.
3. The third (pink) copy of the TRF must be attached to the TEAR when it is submitted to the Controller's Office after travel is completed. The fourth (goldenrod) copy is the Department file copy.
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B. When using the internet or other sources:
IV. ADVANCES
As a result of the use of the IIT American Express card or other credit cards for travel expenses such as lodging, food, air travel, car rental, etc., out-of-pocket expenses should be minimal. If an advance is required, the TRF must be forwarded to the Controller's office prior to travel.
A. A traveler can be given a cash advance up to a limit of $100.00.
B. No advances will be issued until a properly completed and approved copy of the TRF (white) is received by the Controller's Office. The Controller’s Office will forward an advance via a check to the traveler’s respective campus only after receiving an approved copy of the TRF (white).
C. Advances must be settled within five working days after the return from the trip. An outstanding travel advance not accounted for within 30 days of return from a trip may be
subject to payroll deduction and must be settled before the traveler can receive a further
advance.
V. TRANSPORTATION RESERVATIONS
A. Use of Travel Agency
IIT employees can use the IIT designated travel agent (Foremost Travel & Tours, Ph: 312-726-4492 or 800-225-7185 / Fax: 312-726-8662), any other travel agent, or the internet to obtain the most economical prices for university travel. (See Attachment C Travel Information). Departments shall assume responsibility for their travel budget and travel documents will be audited to ensure compliance with the travel policy.
When IIT employees choose to use the designated travel agent, they must fax a copy of the properly completed TRF to the agent prior to the agent issuing and releasing tickets or confirmation numbers. The original TRF should be forwarded to the Controller's office.
No binding reservations, the costs of which are charged directly to IIT, may be made by the IIT designated travel agent until a properly completed and approved travel request form (TRF) is provided to the travel agent. All airline tickets issued for university business by the IIT designated travel agent will be charged to a centrally billed account. Any airline ticket that is billed to our central account is treated as an advance (see III.D.) to the employee until properly accounted for.
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For efficient reservation services, it is also requested that when employees use Foremost Travel & Tours for the first time, they complete and return a "BusinessTraveler Profile" (Attachment D) which can be obtained from the Controller's Office or the Downtown Campus, Office of Administration and Finance, Suite 265. The information contained in the profile will remain confidential.
B. Cost Containment
Whenever possible, employees should plan their trips in advance so IIT can take advantage of discounted airfares. In many cases, hotel and automobile rates are also discounted by making reservations in advance.
Coach and other discounted airfares are considered reimbursable expenses by IIT. First class and business class air travel are generally not reimbursable, except when unusual circumstances warrant exception. These exceptions must be approved in advance by the appropriate Vice President, in writing, and by the Controller’s Office.
Employees should use connections, one-stop flights, and alternate airports whenever feasible, ensuring cost effectiveness. All airline tickets, hotel, and rental car reservations made on the internet or through other sources must be charged to a corporate or personal credit card. Only airline tickets reserved by the designated travel agent will be charged to IIT’s centrally billed account.
C. Itinerary
Each traveler should leave an itinerary with his/her department and, if possible, information on how he/she can be reached during the trip. Should an approved itinerary change during the trip, all changes must be noted on the original TEAR.
D. Travel Cancellation or En Route Changes
1. Upon adequate notification by the individual traveling, the designated travel agency will cancel transportation reservations. If arrangements were made through another travel agent or the internet, the traveler is responsible for canceling all reservations. All cancelled pre-authorized trips which have centrally billed airline tickets or travel advances need to be noted on the original TEAR.
2. If a pre-authorized trip is canceled and the airline ticket issued was centrally billed to IIT, return the ticket along with the associated TEAR to the Controller’s Office. When the ticket is returned, provide the reason for cancellation and the charge number from the TEAR.
3. If a pre-authorized trip is canceled and a travel advance was issued, immediately return advanced monies to the Controller’s Office and net the expense report to zero (if no other expenses were incurred).
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5. When canceling a reservation, the operator's number, time, and date should be recorded on the reverse side of the ticket.
6. Once an employee has reached his/her destination and a change in routing becomes necessary, the designated travel agent will make arrangements to have the tickets ready for pick-up at the airport counter or will give the traveler a confirmation number for an electronic ticket. When a change in routing becomes necessary for a traveler who has made reservations through other sources, he/she is responsible for changing their own reservations.
VI. REIMBURSABLE EXPENSES
A. Transportation
1. Air Travel-Coach Class travel will be the traveling standard. To reach destinations outside of practical driving distances, IIT employees are typically expected to travel via commercial air. The IIT designated travel agent is required to book the most economical fare, keeping the
traveler’s convenience in mind. Requests for traveling on fares other than coach must be
approved in advance, in writing, by the appropriate Department Director or Vice President.
2. Rail Transportation-First Class Rail travel is IIT’s normal standard. If the rail
transportation is more expensive than available airfare rates, election of rail travel in lieu
of commercial air transportation must be approved in advance, in writing, by the appropriate
Department Director or Vice President.
3. Vehicle Rental-Compact or mid-size car rentals are IIT’s normal traveling standard. To
minimize travel costs, employees must refuel vehicles prior to returning them to the rental agent.
4. Privately Owned Vehicle-If an employee desires to use his/her own car in lieu of air travel, written approval from his/her Department Director or Vice President must be obtained in advance. Reimbursement will be limited to the lesser of the average coach air fare or first class rail fare normally paid by IIT or the amount determined by using the standard per mile reimbursement rate. When auto travel is used for transportation, the reimbursement will be at the rate that is currently allowed by the Internal Revenue Service. (The rate as of January 2006 is 44.5 cents per mile.) In the event of an accident involving a privately owned vehicle, the driver’s personal auto coverage is primary because coverage follows the vehicle.
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5. Parking-If an employee decides to drive his/her car to the airport and leaves it there for the
duration of the trip, the cost for long-term parking should be considered. Receipts must be attached to the TEAR.
6. Employees must use the most feasible and cost-effective mode of transportation to and from
airports. Options such as shared rides, public transportation, hotel shuttles, long-term
parking etc. should be investigated. The designated travel agent may be able to help
obtain some forms of ground transportation. Receipts are always necessary for
reimbursements of ground transportation.
B. Car Rental and Insurance
IIT employees can use the IIT designated travel agent (Foremost Travel & Tours, Ph: 312-726-4492 or 800-225-7185 / Fax: 312-726-8662), any other travel agent, or the internet to obtain the most economical prices for rental cars. Departments shall assume responsibility for their travel budget and travel documents will be audited to ensure compliance with the travel policy. In the normal course of business, rental cars should be compact or mid-size whenever possible. Employees traveling together must share rental cars. The traveler must submit a copy of the car rental agreement with the expense report. Gas and toll expenses are considered reimbursable.
When picking up a rental car, employees should ask the rental agency if they have any special promotional rates which are lower than the standard corporate rates IIT has received. Consideration of mileage charges should be part of the equation. Refueling rental vehicles before returning them is a must to avoid exorbitant refueling charges imposed by rental agencies.
Automobile liability insurance is provided by IIT for an employee renting a vehicle while on university business. This covers liability for damages to another vehicle or property and injury to other persons. This insurance does not cover damage to the rental vehicle. Note: for international travel, employees need to obtain the automobile liability waivers provided by the car rental agency because IIT’s current automobile insurance policy only covers employees driving in the United States.
Loss Damage Waivers (LDW) and Collision Damage Waivers (CDW) are not actual insurance policies, but waivers of the renter’s responsibility to pay for loss or damage to the rental vehicle. A few states, including Illinois, do not allow for the purchase of these waivers. The traveler may decline an LDW and/or a CDW if they have adequate coverage for rental vehicles on their personal automobile insurance policy. Use of some credit cards (i.e. VISA or Master Card) from certain banks may provide CDW coverage. IIT employees may purchase a waiver when available to avoid involving their own personal insurance.
If the traveler has Renter's or Homeowner's insurance, loss of personal effects may be covered under their policy. If the traveler has adequate coverage, the traveler does not need to accept the optional Personal Effects Coverage offered by the car rental agency unless they prefer not to
involve their insurance company. Any damage or loss due to collision, theft, fire, vandalism, or
loss of use charges by the car rental company must be reported to the rental car company and IIT's Risk Insurance Office.
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C. Living Expenses
Living expenses include reasonable amounts for lodging and meals.
1. IIT employees can use the IIT designated travel agent (Foremost Travel & Tours, Ph: 312-726-4492 or 800-225-7185 / Fax: 312-726-8662), any other travel agent, or the internet to obtain the most economical prices for hotels and motels. Departments shall assume responsibility for their travel budget and travel documents will be audited to ensure compliance with the travel policy. Lodging reservations for a conference or seminar offering a special block rate should be utilized when available. Employees are expected to select medium range hotels and motels and to avoid luxury cost hotels when traveling on university business. Hotel rooms should be charged to a credit card whenever possible. Attach the receipts and record hotel expenses daily.
2. A single room in a business class hotel/motel is IIT's standard. Suite or luxury accommodations cannot be reimbursed unless prior Department Director or Vice President approval is received. If suite or luxury accommodations are obtained because the hotel/motel is overbooked, it is the employee's responsibility to ensure that only the corporate single rate is charged for the accommodation.
3. Indicate costs of meals, including the tip, on the TEAR. The $30 per diem on meals and incidentals. The traveler may also retain receipts and be reimbursed for actual costs. All reimbursements in excess of $30 per day will require receipts; however, feasibility and cost containment should always be considered.
D. Other
IIT travelers each receive $200,000 flight insurance through the Corporate American Express card if it is used to book reservations. Should additional insurance be desired, reimbursement will not be made for the extra purchase.
Employees with receipts or bills will be reimbursed for necessary expenses such as local transportation, parking, toll charges, telephone calls, postage, telegrams, faxes, registration fees and other charges incurred for IIT or sponsored activities. Reimbursement without required receipts is subject to the discretion of the Controller’s Office.
VII. NON-REIMBURSABLE EXPENSES
Unreasonable or unnecessary expenses are not typically reimbursable:
· Non-business related expenses
· Movies or other personal entertainment
· Childcare fees
· Kennel fees
· Fines or other financial penalties for violations of laws or regulations
· Repairs to privately owned vehicles
· Alcoholic Beverages
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· Gifts
· Loss from theft
· Annual credit card fees on non-IIT issued cards
Guidance should be sought from the Controller’s Office as to the reimbursement policy of any
questionable or unusual expense before the expense is incurred.
VIII. RULES FOR PREPARATION OF TRAVEL EXPENSE ACCOUNTING REPORT (TEAR)
A. TEAR & CDV
1. A Travel Expense Accounting Report (TEAR) must be prepared in duplicate and must be signed by the person making the trip. Both copies should be forwarded to the Controller's Office with proper approvals as soon as possible after returning from the trip. At the Downtown Campus, the (TEAR) should be submitted to the Assistant Dean of Administration and Finance for approval and then will be forwarded to the Controller’s Office.
2. Airline tickets purchased that were not centrally billed may be reimbursed in advance.
This may be done by submitting a Cash Disbursement Voucher (CDV) to the Controller’s
Office with a copy of the credit card charge attached. The trip and account number from
the upper right hand corner of the TRF must be shown on the CDV. When submitting the
the TEAR, this reimbursement must be shown as a prepaid amount.
1. Expense items should be recorded at a time when the traveler has complete knowledge of
every detail of expense.
2. Expense items must be substantiated with receipts, credit card bills, paid bills, etc. whenever possible. The items listed below must have receipts:
· Out of town lodging (regardless of amount).
· Transportation expenditures of $30 or more.
· Meals and incidentals in excess of the $30 per diem.
3. When making long distance telephone calls and telegraphs, itemize and indicate the person called and points between which the call was made. Employees may use their personal telephone cards to call IIT "collect" if necessary. Reasons for all long distance calls should be given. Only university business related telephone calls will be reimbursed.
4. When making local telephone calls, show total dollar amount only and the number of calls.
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C. Charge Number
Indicate the account number (including travel expense sub codes) to which expenditures should be charged. Account sub codes for travel include the following: Domestic Air Fare-3210; Foreign Air Fare-3220; Registration fees-3230; Hotel Expenses-3240; Meals-
3250; Local Travel-3260; Auto Rental-3270; and Other-3280. When travel expenses concern two or more accounts, an allocation of the proper portion of expenses should be made.
D. Approval
The Travel Expense Accounting Report (TEAR) must be approved by:
1. The appropriate Department Director or Vice President who certifies that the purpose of the trip was accomplished.
2. The Controller (or Controller appointed individual) who verifies:
a. The authenticity and formal correctness of the attached supporting documents, e.g.
receipts, credit card bills, paid bills, etc.
b. Accuracy in counting and footing of the columns listed on the TEAR.
c. The conformity of listed expenditures with the obliging regulations.
IX. INTERNATIONAL TRAVEL
International travel is considered travel outside the United States and its possessions. International travel requires approval from the appropriate Vice President.
Employees who perform tasks in foreign countries should notify the Human Resources Office in advance so that Workers’ Compensation coverage may be assessed. Each case must be examined on its own merits to determine if replacement coverage is necessary. Trips to certain countries may require shots and vaccinations prior to departure.
Note: for international travel, employees need to obtain the automobile liability waivers provided by the car rental agency because IIT’s current automobile insurance policy only covers employees driving in the United States.
Note: all expenses must be reported on the TEAR in U.S. dollars. Exchange rates must be noted on each receipt when receipts are represented in foreign currency and supported with external exchange rate documentation or submit a copy of the credit card receipt in U.S. dollars.
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X. INSURANCE
All of IIT’s group life and accidental death and dismemberment insurance are fully effective while an employee is traveling on university business by aircraft, train, bus, taxi, personal automobile or rental car. Travelers should review the Group Life and AD&D Insurance booklet for specific coverage and limits.
Policies currently providing coverage are:
· CIGNA Group Insurance-Life/Accident/Disability
· Optional Hartford Life and Accident Insurance
Coverage for travel in war zones or hostile areas may be excluded or may require payment of an additional premium.
Employees who perform temporary tasks in foreign countries should notify the Human Resources Office in advance of travel so that Workers’ Compensation coverage may be assessed. Each case must be examined on its own merits to determine if replacement coverage is necessary.
IIT provides liability insurance for employees when using a rental car. The Loss Damage Waiver (LDW) and the Collision Damage Waiver (CDW) should be taken, when available, if the employee does not have this rental vehicle coverage under their personal automobile liability insurance or under the credit card used to pay for the vehicle, or if the employee opts to not involve their own insurance company. Note: for international travel, employees need to obtain the automobile liability waivers provided by the car rental agency because IIT’s current policy only covers employees driving in the United States. Accidents in a rental vehicle should be reported as soon as possible to the car rental agency and the Risk Management Office.
XI. PROCEDURES FOR IIT DESIGNATED TRAVEL AGENT
The IIT designated travel agent is required to comply with the procedures set forth in this travel policy when university business travel tickets are issued to IIT employees and charged to our centrally billed account.
IIT employees are required to fax a properly completed and approved copy of the TRF prior to the agent issuing or releasing tickets or giving the employee a confirmation number for electronic tickets. IIT employees will then forward the original TRF to the Controller’s Office.
The travel agent copy of the TRF will indicate the transportation requirements of the traveler as well as the date the tickets are required.
The travel agent should not alter the original authorized description of the travel/itinerary (TRF). The traveler will document any changes of travel dates, destinations, etc. on their TEAR.
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The travel agent will provide travelers with a quote (booking) form for airfares, hotel rates, or rental car rates if requested to do so.
When a traveler refuses the lowest fare or rate quoted by the designated agent, the agent will prepare and forward a Fare Refusal Report to IIT with a brief explanation of why the traveler refused the fare or rate.
Employees may make preliminary scheduling plans over the phone with the IIT designated travel agent. However, under no circumstances will the IIT designated travel agent release tickets billed to our central account or to an IIT employee unless the employee has submitted an approved trip
authorization form (TRF) to the designated travel agent. The employee will forward this form to the Controller’s Office.
Air Travel-IIT designated travel agents are required to book the most economical airfare, keeping the traveler’s convenience in mind. Coach class is IIT’s traveling standard.
Car Rental-In reserving a vehicle that will meet the traveler’s needs, the IIT designated travel agent should obtain the best available pricing with consideration give to IIT’s pre-negotiated car rental rate with Avis. Compact or mid-size car rentals are IIT’s normal traveling standard.
Living Expenses-IIT designated travel agents are required to obtain the most cost effect,
conveniently located accommodations available. Accommodations are normally booked at a single
occupancy rate. When special accommodations are required, the IIT employee should indicate this
on the TRF.
Non-Refundables-These tickets are to be returned to the Controller’s Office along with the original TEAR. This ticket information will be entered into the employee travel profile and the travel agent will periodically advise the employee of the status of the non-refundable ticket. The employee has one year from the date of issuance to use the ticket.
REVIEWED AND APPROVED BY
IIT Travel Committee
President Collens
Senior Staff
ISSUED BY: Manager, Bus. Oper. & Risk Ins.
Attachment A
(Travel Request Form)
Contact Controller's Office at ext. 73240
Attachment B
(Travel Expense Accounting Form)
Contact Controller's Office at ext. 73240
Attachment C
Travel Information
AAA-Chicago Motor Club
Foremost Travel & Tours (IIT's Designated Travel Agent)
Chicago, IL (800) 222-4357 Chicago, IL (773) 784-3400
American Express-Keystone Gant Travel Management
Chicago, IL (312) 225-8557 Wood Dale, IL (630) 227-3800
Boulevard Travel, Inc. Hobbit International
Chicago, IL (312) 266-1004 Des Plaines, IL (773) 693-0220
Carlson Wagonlit Travel Hub Travel Center
Chicago, IL (312) 263-1122 Bedford Park, IL (888) 301-4482
Corporate Travel Management Group Travel Management Consultants
Lombard, IL (630) 691-9100 Wood Dale, IL (630) 238-0055
*IIT special rates and or programs
Attachment D
(Business Traveler Profile)
Contact Controller's Office at ext. 73240